Best WallStreetBets Stocks to Buy January Week 5 Roundup

It is now been more than a year since the WallStreetBets mania gripped Wall Street. The Reddit group became a force to reckon with and hedge funds lost billions betting against the stocks that WallStreetBets was backing.

Melvin Capital almost went bankrupt shorting meme stocks. However, Melvin Capital has since recouped most of the losses. WallStreetBets also remains a pale shadow of its past. The falling popularity (and stock prices) of meme stocks reflect that the group cannot trigger those epic short squeezes that it used to do last year. However, some of the names on the group look like good buys. Here are the five best WallStreetBets stocks that you can buy in January week 5.

1. Tesla (NYSE: TSLA)

Tesla is one of the all-time favorite stocks of WallStreetBets members. The stock has fallen sharply from its peak and is into the bear market territory. The stock plunged after its fourth-quarter earnings release. While its earnings were better than expected, Tesla said that it would delay the launch of new vehicles to 2023. The company’s Cybertruck was anyways running behind the original timeline, and would now fall behind both Ford’s F-150 and Lordstown Motors’ Endurance.

Tesla is among the top five WallStreetBets stock

Tesla is currently among the top five trending names on WallStreetBets. While the stock tumbled after the earnings release, Wall Street analysts do not seem too perturbed. Mizuho reiterated its bullish rating on both Tesla and Rivian.

Morgan Stanley, which is among the most notable Tesla bulls also reiterated the stock as overweight. In its note, it said, “Tesla was already the most profitable major auto company in the world, but is now emerging as the most cash flow generative auto company in the world (pound for pound) as production costs may be in position to further gap down with the introduction of new plants and radically new manufacturing techniques.”

The recent fall in Tesla stock looks like a good opportunity to own this WallStreetBets name. Tesla expects its deliveries to rise more than 50% this year and should maintain the trajectory over the next many years. The stock’s valuations also look reasonable at these levels.

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2. Apple (NYSE: AAPL)

Some of the Wall Street analysts were apprehensive about Apple heading into the earnings. However, the company’s earnings shattered estimates. The company reported revenues of $123.9 billion in the quarter which were 11% higher than the corresponding period last year. The revenues surpassed analysts’ estimates of $118.7 billion and were a new quarterly record for the company.

Its iPhone revenues increased 9% YoY to $71.63 billion. The Services revenues rose 24% to $19.52 billion. The company’s iPad revenues fell 14% YoY to $7.25 billion. Barring iPads, all other business segments reported better than expected earnings. The company’s EPS increased 25% YoY to $2.10 and was way ahead of the $1.89 that analysts were expecting.

As has been the case over the last two years, Apple did not provide any guidance. However, the company’s CEO Tim Cook said, “What we expect for the March quarter is solid year-over-year revenue growth.” He added, “And we expect supply constraints in the March quarter to be less than they were in the December quarter.”

Apple is the top trending name on WallStreetBets

Apple is another long-time favorite WallStreetBets stock. After the company’s blowout quarter, it is currently the top trending name in the group. Several Wall Street analysts raised their target price on Apple after the earnings report.

Morgan Stanley’s Katy Huberty raised her target price from $200 to $210. She said, “We believe that [Thursday’s] results will help refocus investor attention on the value of Apple’s ecosystem, and more specifically, user lifetime value.” Deutsche Bank also raised its target price from $200 to $210. It said, “AAPL also saw a ~330bps y/y improvement in Product gross margins, despite the inflationary component pricing environment, and this gives us confidence that consumers are continuing to shift more towards higher cost (and higher-margin) AAPL products.”

Bank of America, UBS, Canaccord Genuity, Atlantic, Oppenheimer, and Baird were some of the other brokerages that raised Apple’s target price. If you are looking to buy a stock that WallStreetBets, Wall Street analysts, as well as Warren Buffett also like, Apple would fit the bill perfectly.

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3. Robinhood (NYSE: NYSE: HOOD)

While Robinhood stock plunged following its fourth-quarter earnings release, it eventually recouped the losses and closed in the green. Robinhood reported monthly active users of 17.3 million in the quarter, which was below the 18.9 million that it reported in the third quarter. It had a total of 22.7 million funded accounts at the end of the quarter, which was slightly ahead of the 22.4 million that it reported at the end of September.

HOOD is among the top trending names on WallStreetBets

While Robinhood’s fourth-quarter earnings were not that bad, the company’s guidance for the first quarter was way below estimates. Robinhood has been trying to reposition itself as a complete investment destination and not merely a “fun trading app.” Talking about its 2022 plan, it said, “Robinhood will build products intended to help with long-term investing, aiming to make it easier for customers to build for their futures no matter where they are in their financial journeys.” HOOD is also said to be contemplating getting into the IRA. However, it remains to be seen how many users trust the app with more serious financial products.

Robinhood traders triggered a rally in HOOD stock

HOOD is currently among the top trending names on WallStreetBets. However, WallStreetBets members have had a love-hate relationship with the company. Several WallStreetBets members were critical of Robinhood when it had blocked trading in meme stocks, leading to massive losses for retail traders. However, HOOD soon joined the ranks of meme stocks, led by euphoria among WallStreetBets members.

All said, at these prices, HOOD looks like a good WallStreetBets stock to buy.

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4. SoFi (NYSE: SOFI)

SoFi went public through a reverse merger with a SPAC sponsored by Chamath Palihapitiya. WallStreetBets members triggered a short squeeze in SoFi stock in 2021. However, the stock has looked weak over the last month amid the crash in growth companies. That said, if you want to play the fintech space, SoFi looks like a good WallStreetBets stock to buy.

Palihapitiya stocks have been popular on WallStreetBets

Apart from SOFI, Clover Health and Virgin Galactic, which also went public through a reverse merger with a Palihapitiya SPAC, have also been popular among WallStreetBets members. However, among these companies, only SOFI trades above the SPAC IPO price of $10. Earlier this month, SoFi announced that it has received regulatory approval to become a national bank in the US through its proposed acquisition of Golden Pacific Bancorp.

Once SOFI becomes a bank, it would get access to low-cost funds and also be able to develop more products. The recent correction in growth stocks looks like a golden opportunity to buy SoFi. The stock is among the top trending names on WallStreetBets also and can also add value to your portfolio.

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5. ARK Innovation ETF (NYSE: ARKK)

Cathie Wood’s ARK Innovation ETF has had a rough ride and trades at less than half of its 52-week highs. It is currently among the top trending names on WallStreetBets where members seem optimistic about the ETFs outlook.

ARKK is among the popular ETFs on WallStreetBets

Apart from ARKK, QQQ, OIL, and CORN are the other popular ETFs on WallStreetBets. If you are a growth investor and want to play any possible recovery in beaten-down tech stocks, ARKK could be a good option.

ETF investing has become very popular and total ETF assets are now around $7 trillion. 2021 was a record year for ETF inflows as investors choose them over the actively managed funds. ETFs can be a good investing strategy especially for investors who lack the time or analytical skills to pick individual stocks

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